Don’t wait too long to get into GTA condo market

If you’re waiting on the sidelines until GTA condo prices cool off, you may be sitting for a long time.

Genworth capital released their Summer Metropolitan Condo Outlook report that forecasts Toronto condo prices will increase by 2.5% in 2013, with an average price of $312,352. The report cites rising single-home prices (that are driving first-time buyers into the condo market), the first wave of retiring baby boomers (who are making the move into urban condo markets), continued population growth and generational low interest rates.

Together, these factors are keeping competition for housing strong. Mark Carney, governor of the Bank of Canada, left the key lending rate at 1% last Wednesday — a level that hasn’t changed in two years. Despite language to the contrary, it’s unlikely the central bank will raise rates until well into 2013.